Section 56(2)(x) Inapplicable to Business Inventory: ITAT Mumbai

Ketan Himatlal Mehta Vs DCIT (ITAT Mumbai) The appeal before the Income Tax Appellate Tribunal, Mumbai challenged an order dated 26 March 2024 of the National Faceless Appeal Centre, which had affirmed an assessment made under Section 143(3) read with Section 144B of the Income-tax Act, 1961 for Assessment Year 2020–21. The Assessing Officer had added ₹18,48,70,810 under Section 56(2)(x) on the ground that immovable property was acquired for consideration lower than its stamp duty value. This addition was upheld by the CIT(A). The assessee, an individual, filed a return declaring total inc...